[cbfair]

I bought one when I got my first ipod about 3 years ago; it was a 20gb model and I was told the plan would cover anything at all, even if I stepped on it or words to that effect. The best part of the plan is that it covered the original retail price meaning that if anything went wrong, I could bring it back and have $400 to spend on a new ipod. Well, about a year later, they introduced the 40gb model with a whole new design and it retailed for... you guessed it, $400.

So what do you think I did?

I did what any rational, sane consumer would do. I placed my ipod into a glass of water and left it there for several hours. When I took it into the store for a replacement, it still had water behind the LCD and the guys who worked there were all passing it around saying they'd never seen anything like it. I told them my cat pushed it off the counter into her water dish and left the store with a brand new, upgraded ipod.

Naturally I paid $25 for another replacement plan and its a good thing I did cause about a year later the hard drive failed and I had to get the thing replaced with... you guessed it, another redesigned ipod. The store no longer does their own insurance on ipods and I had to go with an AppleCare agreement through the manufacturer. Probably -EV this time.

If the program will provide store credit for the original price and cover any damage whatsoever, I think they are seriously +EV. But you've got to be willing to put the hammer down when the time comes to upgrade or else they aren't worth it.